JPMorgan: Yields no 'insurmountable' hurdle for stocks
JPM•Macro and earnings remain supportive
The bank points to three consecutive months of rising euro zone PMI readings and the latest U.S. ISM survey hitting a four-year high. Economic surprise indicators also remain robust.
"Weekly EPS revisions have moved outright positive in all regions," Matejka writes.
The strategist sees inflation expectations well anchored, citing subdued wage growth and mixed labour market signals.
"Central banks might deliver less tightening than is currently priced in."
JPMorgan stays constructive despite higher yields
September may have started on a gloomy note, with a bond selloff rattling markets, but strong macro and earnings are giving J.P. Morgan reasons to stay constructive into year end.
Global equities have returned about 15% this year in dollar terms and strategist Mislav Matejka says rising bond yields are unlikely to present an "insurmountable" obstacle, as the backdrop for risk assets remains favourable.
